Apple blocked a Facebook update demanding a 30% tax on the App Store

08/30/2020 Business

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Apple blocked a Facebook update because its new feature called Apple on the 30% app store tax that the company assumes on all in-app purchases.

Apple said the update violated an App Store rule that does not allow developers what information is “irrelevant” to users. Facebook responded that it will continue to work to make this information available to users.

Announced last month, Facebook is introducing a new feature that allows users to purchase event tickets online directly through its app. Facebook says it does not charge any fees for selling event tickets online. The company also explained that it asked Apple to waive its App Store fee (Apple’s rules say that digital content purchases must use the App Store payment system, so Apple takes a cut of 30 % of the total amount) so that all proceeds can go to the event organizers. Apple refused.

Now I understand that 30% might feel heavy, but let me ask you this: why would Apple allow developers to use its platforms for free? Let me also remind you that other event platforms also generate income from ticket sales.

In any case, Facebook has released its new feature via a modified update, which no longer displays the message about the 30% tax from Apple’s App Store. The screenshot below dates from last month when Facebook first announced the new feature. It clearly stated that “Apple takes 30% of this purchase” in the iOS app (left), whereas nothing of the sort existed in the Android version (right).

Images: Facebook

However, according to Reuters, both messages have been removed and there is nothing under “Purchase Access” in either application.

“Now more than ever, we should have the option to help people understand where their money is really going for small businesses,” Facebook said in a statement to Reuters. “Unfortunately, Apple rejected our transparency notice on its 30 percent tax, but we are still working to make that information available within the app experience.”